CHURNING
Excessive trading in a client’s account by a broker seeking to maximize commissions, disregarding the client’s best interests. This illegal and unethical act violates SEC rules and securities laws. While it cannot be measured, frequent buying and selling of securities far from the client’s investment objectives may be considered churning. It may often lead to substantial losses in the client’s account and may incur a tax liability for the individual even if profitable.
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Mature Economy
An economic situation where the birth rate is stable or lower than mortality rate, as well as the pace of economic growth has slowed down. It is ch ...
Blackberry Addiction
Colloquial term for overreliance or overuse of Blackberry. The smartphone is manufactured by Research in Motion. It is a prevailing condition for s ...
Completed Contract Method - CCM
Accounting method allowing a taxpayer or business to defer reporting of income and expenses until the contract has been completed. Frequently, this ...
Choice Market
Market in which the spread between the bid and ask prices for a particular financial instrument is zero. Meaning the instrument can be purchased fo ...
Rational Pricing
A theory that states the prices that reflect a security’s fundamental value and the absence of arbitrage opportunities.
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